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Bankers claim that India's JSW Group companies plan to sell $300 million in debt.
Two JSW Group companies will raise around 28.5 billion rupees (about $298 million) in shorter-term bonds during the quarter of October-December, according to a few bankers. JSW Energy will raise 15 billion rupees via bonds with a maximum of five years, and JSW Steel can raise 13.5 billion rupees by borrowing for three or four years, according to bankers who requested anonymity because they were not authorized to speak to media. According to the bankers, if interest rates are favorable in October, then companies could tap into the market. Emails sent to the firms seeking comments were not answered. India Ratings has rated the bonds of JSW Energy as "AA". Around 25 billion rupees worth of bonds are outstanding. In March 2025, the company that has thermal, renewable and hydro power operations raised 8 billion rupees by issuing bonds for three and five years at rates of 8.75% and 8,80%. The AA-rated instruments can be considered safe when it comes to meeting their financial obligations. JSW Steel is rated "AA+" with outstanding bonds of over 61 billion rupees by ICRA and Indian Ratings. The company last used the bond market two years ago when it raised 22.5 billion rupees by issuing 'five-year' and'seven-year-papers at 8.35% & 8.43% respectively.
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Oil prices drop as tech lifts share market in Asia
On Monday, Asian share markets rose as AI's demand for data boosted?chipmakers. Oil prices also eased after reports that more oil was leaving the Gulf than originally thought. The dollar was flat at 157.00yen on Wednesday as Japan celebrated its Silver Week holiday. Investors were 'wary' in case the Bank of Japan used the lack of liquidity to support its currency. Nikkei reported that the yen rose on Friday, after Japanese authorities checked the rate of the currency market. South Korea's technology-heavy index rose 1.4% while Taiwan rose to a new three-month-high of 1%. MSCI's broadest Asia-Pacific share index outside Japan gained 0.9% and Chinese blue chip stocks gained 0.2%. Japan's Nikkei closed, but futures rose by 0.2%. S&P futures rose 0.4% while Nasdaq added 0.6%. In Europe, EUROSTOXX50 futures increased by 0.5%. DAX futures grew by 0.4%, and FTSE futures gained 0.2%. The bond markets remain tense following a brutal selloff that saw US 2-year yields rise 36 basis points over the past two week to peaks not seen since late 2024, at 4.7604%. The Federal Reserve's hawkish comments last week have futures betting on a 56% probability that it will raise rates again in October. A move by the end of the year is considered to be a done deal. Analysts at BofA wrote in a report that tightening cycles tend to be front-loaded and the Fed rarely stops after a single hike. "With nominal consumer expenditure up 6.3% over the past year, which is well above the 5% threshold historically associated with core inflation above target, the Fed's only option is to reduce demand." "We are therefore retaining our call for only two more hikes in October and December." Talk of an increased supply hits oil By the end of the year, central banks in Australia, New Zealand, Japan, Australia, and EU countries are expected to tighten their monetary policy. On Thursday, the Swiss National Bank, Sweden's Riksbank, and Norges Bank will hold their policy meetings. However, all three are expected to remain stable for the time being. The risk premium for French bonds has also risen to its highest level since the eurozone debt crisis. German debt could be under pressure on Monday, after the conservative mainstream party of Chancellor Friedrich Merz suffered its worst electoral results since 1949. The news held the euro steady at $1.1477 after it had fallen almost 1% in the previous week, as the dollar rose broadly. The oil prices fell despite the new threats exchanged between Iran and the United States and after the Houthis attack Saudi Arabia's capital. Brent oil prices fell by 1.7%, to $102,08 per barrel. US crude oil dropped 1.8%, to $98.53. Kpler, an analytics firm, reported that exports of the OPEC kingpin have recovered to just under 4 million barrels a day (bpd), after falling to 2.4 millions bpd last month. This is the lowest level since at least 2013. On the weekend, Admiral Brad Cooper of the U.S. Central Command said that the volume of crude, cargo and liquefied gas was higher in the last two weeks than at any other time in the previous six months. Saudi Arabia also reported that it hoped to restart some flow through its east-to-west main pipeline following the damage caused by attacks last week. However, details were lacking, and analysts harbored doubts. Vivek Dhar is the head of commodities for CBA. He said that the closure of the East-West?pipeline had materially changed the state of oil markets. We now estimate oil markets have 5 to 10 weeks until global oil and refined products inventories are depleted, compared with estimates closer to 15 or 20 weeks a few weeks ago. He said that this would put more pressure on Washington to reach a deal with Iran to 'boost the flow through the Strait of Hormuz, and to keep the 'Bab el-Mandeb Passage open. US President Donald Trump is attending the United Nations General Assembly in this week. He will then meet with Chinese President Xi Jinping, on Thursday. US Treasury Secretary Scott Bessent, and Chinese Vice Premier He Lifeng completed talks in New York Sunday. The US side proposed a new AI notification mechanism that the leaders will consider during their summit. Gold, which does not pay interest, was down 0.5% to $4,355 per ounce on other markets due to the increase in yields.
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Depending on who you speak to, more oil is flowing in Europe.
Wayne Cole gives us a look at what the future holds for European and global markets. The week has started off with a positive note in Asia, thanks to a drop in oil prices and reports, often contradictory, of an increased supply from the Middle East. Brent started higher after the Houthis attack the capital of Saudi Arabia?overnight, but quickly slipped by 2% as the Kingdom hoped to restore some flow through its East-West pipe. Admiral Brad Cooper of the US Central Command said on the weekend that the volume of crude, cargo and liquefied gas shipped in the last two weeks had been higher than any other time in the previous six months. The US military was escorting ships, but they were running through the Strait of Hormuz without their transponders on. This made it difficult to confirm Cooper's estimate. Just 12 cargo vessels, for example, transited Strait of Hormuz between Saturday and Sunday. This is down from 35 during the previous weekend. Kpler figures show that exports of the OPEC kingpin have recovered to just under 4 million barrels a day (bpd), after falling to 2.4 millions bpd last August, which was the lowest level since at least 2013. JPMorgan analysts said that satellite data showed Saudi oil flowing through the Strait of Hormuz on average 2.9 million barrels per day over the last six days. This is up from 700,000 barrels per day in August. Oil prices dropped, which helped boost most stock markets. However, liquidity was low as Japan was on a 3-day holiday. South Korea's tech sector rose more than 1%. Nasdaq and S&P futures both gained 0.6%. The euro was also'steady' at $1.1484, while the dollar drifted under 157.00 yen amid concerns that the Bank of Japan might?take advantage of a?lack in liquidity to intervene and support its currency. The euro was also stable at $1.1484, and the dollar drifted below 157.00 yen due to concerns that the Bank of Japan would 'take advantage of a lack of liquidity in order to support its currency. The Nikkei reported that the yen rose on Friday, after Japanese authorities checked the rate of the currency market. The week ahead will be a busy one for diplomacy, with US President 'Donald Trump' attending the United Nations General Assembly and meeting Chinese President Xi Jinping Thursday. Treasury Secretary Scott Bessent,?Chinese vice premier He Lifeng and the US concluded their talks in New York on Sunday. The US side proposed a new AI notification mechanism. Market developments on Monday that may have a significant impact - Appearances of ECB President Christine Lagarde and ECB Board Member Piero Cipollone. Bank of Canada Governor Tiff MacKlem, and Federal Reserve Bank of Chicago president Austan Goolsbee.
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Copper prices rise as Fed raises interest rates clears the uncertainty
Prices of copper rose on Monday as the US Federal Reserve raised interest rates last week, removing months-long uncertainty about rates. Meanwhile, optimism remained over strong China demand. Benchmark three-month Copper on the?London Metal Exchange rose 0.06% to $14,530.5 per metric tonne by 0300 GMT. The price had hit $14,600.50 per ton earlier, its highest level since September 10 when it reached a high of $14,875. The most traded copper contract at the Shanghai Futures Exchange? edged up 0.37% to 109.940 yuan (16,419.49 dollars) per ton. Analysts from Chinese broker Everbright Futures stated in a Monday note that the Fed's hike had removed the largest?near term uncertainty? in the copper markets, but extreme mine-side shortages and ultra-low Chinese?inventory levels still formed a base. Copper, a commodity that is dependent on growth to grow, can be negatively affected by higher?interest rates. Prices are supported by strong demand from China. Yangshan copper Last week, the price of copper in China, which is a measure of demand, reached $124 per ton. This was its highest level in almost four years. Everbright Futures analysts also cited the expectation of inventory replenishment in advance of National Day next week as a price support. Oil prices fell to their lowest level in more than a week even after US and Iran exchanged threats on Sunday, amid a deadlock. US President Donald Trump has said that he is open to meeting Masoud Pezeshkian who will be in New York this week. Copper prices have been affected by the war, which has threatened to slow down global economic growth. Aluminium fell 0.27% on the LME, while zinc rose 0.52%. Lead gained 0.21% and nickel gained 0.64%. Tin ticked up 0.05%. Aluminium lost 0.57% on the SHFE. Zinc gained 0.7%. Lead gained 0.61%. Nickel dipped by 0.1%. Tin gained 0.88%.
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Bangladesh increases fuel prices up to 17% in response to global oil price spike
The government of Bangladesh raised fuel prices up to 17.4% in order to stem the mounting losses resulting from the global oil price surge and the higher shipping costs associated with the Middle East conflict. The new rates are effective Monday and are expected to increase transportation and production costs in the import-dependent economies, increasing inflationary pressures during a time when many industries, such as the key garment export sector of the country, are already "fighting with an acute energy shortage". According to the Energy Ministry, international fuel prices have more than doubled from March 2026. Freight charges are also up significantly due to regional instability. Diesel prices increased 17.4% under the new rates to?135 Taka per litre, up from?115 Taka. The price of octane gas increased from 145 to 165 Taka per litre. Petrol rose from 140 to 160 Taka, and kerosene from 135 to 155 Taka. The government raised fuel prices in April and June to offset the rising costs of imports due to higher global oil prices. The ministry stated that state-owned Bangladesh Petroleum Corporation suffered losses of 228.76 billion takas ($1.9 billion) from March to August. It said the price increase could reduce annual 'losses' by 100 billion takas, while conserving foreign exchange reserves and curbing fuel theft into neighbouring countries with higher prices. The ministry also cited substantial subsides for?liquefied gas, saying that the?government continued to support the supply of electricity and gas despite increased import costs resulting from the regional energy crises.
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As oil prices fall, tech shares rise in Asia
As AI's demand for data grew, chipmakers saw their share prices rise. Oil also eased as reports suggested that more oil is leaving the Middle East than was previously believed despite the ongoing Gulf conflict. The dollar was trading at 156.67yen, despite the fact that Japan is on holiday for Silver Week. Investors were wary of the possibility that the Bank of Japan would use the lack of liquidity as an opportunity to support its currency. Nikkei reported that the yen rose on Friday, after Japanese authorities checked the rate of the currency market. South Korea's technology-heavy index rose 1.5%. MSCI's broadest Asia-Pacific share index outside Japan gained 0.8% and Chinese blue chip stocks gained 0.6%. S&P futures rose 0.4% while Nasdaq added 0.6%. EUROSTOXX Futures and DAX Futures both increased 0.4% in Europe. FTSE Futures rose?0.2%. The bond markets remain tense following a brutal sell-off that saw US 2-year yields rise 36 basis points over the past two week to peaks not seen since mid-2024, at 4.7604%. The Federal Reserve's hawkish comments last week have futures betting on a 56% probability that it will raise rates again in October. A move by the end of the year is considered to be a done deal. Analysts at BofA wrote in a report that tightening cycles tend to be front-loaded and the Fed "almost never stops after a hike." "With nominal consumer expenditure up 6.3% over the past year, which is well above the 5% threshold historically associated with core inflation above target, the Fed's only option is to reduce demand." "We?retain our call for only two more hikes in October and December." Talk of an increased supply hits oil The central banks of the EU, UK and Japan are also expected to tighten up by the end of this year. The Swiss National Bank, Sweden’s Riksbank, and Norges Bank all hold policy meetings Thursday but are expected to remain steady. The risk premium for French bonds has also risen to its highest level since the eurozone debt crisis. German debt could be under pressure on Monday, after the conservative mainstream party of Chancellor Friedrich Merz suffered its worst electoral results since 1949. The news held the euro steady at $1.1480 after it had fallen almost 1% in the previous week, as the dollar rose broadly. Prices of oil eased despite the fact that Iran and the United States were exchanging new threats, and Saudi Arabia's capital was attacked by the Houthis. Brent oil prices fell by 2.1%?to $101.63 per barrel while US crude prices dropped by 2.1% to $98.15. Kpler, an analytics firm, reported that exports of the OPEC kingpin have recovered to a little over 4 million barrels a day (bpd), so far in September. In August they had fallen to 2.4 millions bpd, the lowest level since at least 2013. Admiral Brad Cooper, the head of the U.S. Central Command said on the weekend that the volume of crude, cargo and liquefied gas was higher in the last two weeks than it had been at any point in the previous six months. Saudi Arabia also reportedly aimed to restart some flow through its east-to-west main pipeline following the damage caused by attacks last week. However, details were not provided. Vivek Dhar is the head of commodities for CBA. He said that the closure of the East-West?pipeline had materially changed the state of oil markets. We now estimate oil markets will have between?5 and 10 weeks left before global oil and refinery product inventories are depleted, as opposed to estimates that were closer to 15 or 20 weeks a few weeks ago. He said that this would put more pressure on Washington to reach a deal with Iran at the very least?to increase flows through the Strait of Hormuz, and keep the 'Bab el-Mandeb Passage open. US President Donald Trump is attending the United Nations General Assembly in this week. He will then meet with Chinese President Xi Jinping, on Thursday. US Treasury Secretary Scott Bessent, and Chinese Vice Premier He Lifeng completed talks in New York Sunday. The US side proposed a new AI notification mechanism that the leaders will consider during their summit. Gold, which does not pay interest, was flat at $4.380 per ounce, despite the increase in yields.
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Bangladesh increases fuel prices up to 17% in response to global oil price spike
The government of Bangladesh is trying to stem mounting losses due to rising oil prices in the world and increased shipping costs associated with the Middle East conflict. New rates that will be effective on Monday are expected to increase transportation and production costs in the import-dependent economies, increasing inflationary pressures during a time when industries such as the key garment export sector of the country are already struggling with an acute energy shortage. The Energy Ministry reported that international fuel prices have?more than doublated since March 2026. Freight charges, meanwhile, have risen dramatically due to regional instability. Diesel prices increased 17.4% under the new rates to 135 taka/litre from 115?taka. The price of octane gas increased from 145 to 165 per litre, petrol to 160 from 140, and kerosene to 155 from 135 per litre. The government raised fuel prices in April and June to offset the rising costs of imports due to higher global oil prices. The ministry stated that state-owned Bangladesh Petroleum Corporation suffered losses of 228.76 billion takas ($1.9 billion) from March to August. It said the price increase could reduce annual losses by about 100 billion takas, while conserving foreign exchange reserves and curbing fuel theft into neighbouring countries with higher prices. The ministry also cited substantial subsides for?liquefied gas, stating that the?government continued to support the supply of electricity and gas despite increased import costs resulting from the regional energy crises.
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Oil shares decline in Asia as tech shares rise
On?Monday, Asian share markets rose as AI's demand for data boosted chipmakers. Oil eased on hopes that Saudi Arabia would boost its supply to offset news of the Houthi attack in?Riyadh. The Silver Week holiday in Japan has been a slow one, with little trade. As a result, the dollar remained at 157.00yen on Wednesday. Investors were wary that the Bank of Japan might take advantage of this lack of liquidity and intervene to support its currency. Nikkei reported that the yen rose on Friday, after Japanese authorities checked the rate of the currency market. South Korea's technology-heavy index, the South Korea Tech-heavy Index, gained 1.1%. MSCI's broadest Asia-Pacific share index outside Japan increased by 0.3%. S&P futures rose 0.3% while Nasdaq futures gained 0.4%. EUROSTOXX Futures and DAX Futures both increased by 0.2% in Europe. FTSE Futures were flat. The bond markets remain tense following a brutal selloff that saw the yields on US 2-year bonds jump 36 basis points over the past two week to peaks not seen since late 2024, at 4.7604%. Futures markets are betting on the Federal Reserve's recent hawkish comments. They believe that it is likely to raise rates again in October. A move by the end of the year would be considered inevitable. Analysts at BofA wrote in a report that tightening cycles tend to be front-loaded and the Fed doesn't stop after a single?hike. "With nominal consumer expenditure up 6.3% over the past year, which is well above the 5% threshold historically associated with above-target core prices, the Fed's only choice is to reduce demand." "We are therefore retaining our request for only two additional hikes in December and October." OIL RESERVES RUN DRY By the end of the year, central banks in Australia, New Zealand, Japan, EU and UK are expected to tighten up again. On Thursday, the Swiss National Bank, Sweden’s Riksbank, and Norges Bank will hold policy meetings, but are expected to remain steady. The risk premium for French bonds has also risen to its highest level since the eurozone debt crisis. The German debt could be under pressure on Monday, after the conservative mainstream party of Chancellor Friedrich Merz suffered its worst electoral results since 1949. The news held the euro steady at $1.1477 after it had fallen almost 1% in the previous week, as the dollar rose broadly. The oil price remained above $100 after Iran and the United States traded new threats, and the Houthis attack Saudi Arabia's capital. Brent oil was down 0.2% to $103.68 per barrel while US crude fell 0.3% to $100.02. Saudi Arabia is said to be aiming to restart certain flows in its east-to-west main pipeline, which was damaged by an attack last week. Details?were missing. Vivek Dhar is the head of commodities for CBA. He said that the closure of the East-West Pipeline has changed the state of oil markets. We now estimate oil markets will have between 5 and 10 weeks left before global oil and refinery product inventories are depleted, as opposed to estimates that were closer to 15 or 20 weeks a fortnight earlier. He added that this would put more pressure on Washington to?make a deal? with Iran. At least, he said, it would restore some 'flows? through the Strait of Hormuz, and keep the Bab el-Mandeb open. US President Donald Trump is attending the United Nations General Assembly in this week. He will also meet with Chinese President Xi Jinping Thursday. Gold, which does not pay interest, fell 0.2%, to $4,370 per ounce, as a result of the increase in yields.
Green hydrogen retreat threatens emissions targets
Around the globe, green hydrogen developers are cancelling their projects and reducing investments. This could lead to a longer-than-targeted reliance on fossil energy.
The sector's initial goals have been exposed as being unrealistic due to the challenges it faces.
Green hydrogen is prohibitively expensive for industries that are hard to electrify, like steelmaking and long distance transportation.
Jun Sasamura is the hydrogen manager for Westwood Global Energy. He said that the gap between European ambitions and actuality shows the magnitude of the industry's reset.
He said that only a fifth (or less) of all planned hydrogen projects in the European Union will be operational by the end decade. Westwood Global Energy data show that this translates to approximately 12 GW in production capacity compared to an EU target for 40 GW.
He added, "I don't think the EU 2030 target (hydrogen production), will be met in the current state."
Expectations Inflation
Many companies claim that the high costs of green hydrogen and the lack of demand have made many plans unprofitable.
Miguel Stilwell d'Andrade is the chief executive officer of Portuguese energy company EDP. He said: "Green hydrogen had been an inflated expectation which has now turned into a valley or disillusionment."
The demand is missing. In Spain and Portugal there are 400 million Euros ($464.2 Million) in subsidies for hydrogen, but we still need someone to purchase the hydrogen.
Ana Quelhas is the chief of EDP's Hydrogen and Co-Chair of the European Renewable Hydrogen Coalition. She said that although several projects are in advanced stages, they cannot be moved forward due to a lack buyers.
Iban Molina, a company executive from Spain, said that Iberdrola had put on hold plans to expand the capacity of a green hydrogen plant with an electrolyser capability of 20 MW, until it found buyers for more output.
In recent years, they are one of more than a dozen major companies who have cut back on spending or shelved certain projects in Europe, Asia and Australia.
Westwood Global Energy reports that companies had cancelled or delayed over a fifth (or more) of all European projects at the end of 2017.
Emma Woodward, at Aurora Energy Research said: "In the years 2020-2021, we had this vision of hydrogen being used in nearly every sector which hadn't yet been electrified.
"I believe we have realised that there are probably other, more commercially viable alternatives in many sectors." We may not need as much hydrogen initially thought.
Too Expensive
Many governments have supported the development of green hydrogen for many years. This is produced by electrolysis, which splits water using renewable electricity into hydrogen and oxygen.
Australia, Britain and Germany, as well as Japan, announced ambitious investment plans that they hoped would lower costs and create a green hydrogen industry that was profitable and would not need any support.
Minh Khoi Le is Rystad's director of hydrogen research.
Grey hydrogen is twice as costly as natural gas, as an example. This latter product is made from coal and natural gas, and is used in many industries including oil refining, ammonia production and methanol.
He added that costs could drop by 30-40% if the equipment prices fall and the supply chain is scaled up. Meanwhile, Woodward of Aurora and Sasamura of Westwood Global Energy said green hydrogen would not be competitive until then.
Wood Mackenzie, a consultancy, says that only 6 million metric tonnes per annum of low-carbon hydrogen is operational or being built in the world, including green and blue hydrogen, which are made from gas.
The consultancy estimates that 450 mtpa is required to achieve net zero emissions of greenhouse gases by 2050. The EU has pledged to reduce emissions by 55% by 2030 compared to 1990 levels, on the way to its 2050 goal.
The market is priced out of reach for buyers
The industry expected sectors like steel, oil refinement, cement, and transportation to be the first buyers. However, the demand that was expected has not materialised.
Dirostahl is a German die-forging company that makes parts for wind turbines and ships, as well as oil and gas drilling pipes. It is dependent on natural gas fired furnaces and is searching for an alternative.
Green hydrogen is too expensive. The fuel is not available for less than 150 euros per megawatt-hour (MWh), while natural gas costs between 30-35 euros/MWh.
"It just doesn't work." In practice, it's economic suicide. "We'd be totally uncompetitive", he said.
The high price of electrolysers for large-scale production is due to infrastructure bottlenecks, and the increased cost of energy resulting from new rules defining what constitutes "green hydrogen".
Some European countries have reduced their ambitions. Italy recently switched 600 million euros of post-pandemic funding from hydrogen to biomethane. In April, France reduced its 2030 target for hydrogen electrolysis by over 30% and Portugal cut its electrolysis ambitions by 45%.
Last year, the Dutch government made drastic cuts in the funds allocated for the development of green hydrogen and batteries. Instead, the climate fund was redirected to the construction of two nuclear power plants.
In Australia, several players have scaled back their projects or pulled out despite the government's support of more than A$8 Billion ($5.2 Billion).
Even projects that are moving forward face delays. Rystad analysts estimate that 99 percent of the A$100 billion projects announced in the next five-year period have not progressed beyond the concept stage or approval.
DIFFICULTIES IN INFRASTRUCTURE
Hydrogen is also difficult to store, as it requires tanks with high pressure and extremely low temperatures. It can also leak. This makes transporting hydrogen through the old gas pipelines, while waiting for new infrastructure, a risky proposition.
Spain hopes to build 2,600 km (1.615 miles) of hydrogen network, and connect it with another project. The trans-European link H2Med - from Iberian to Northwest Europe.
Arturo Gonzalo is the CEO of Spanish gas grid operator Enagas. He said that while the Spanish network will be operational by 2030, delays of up to two years may occur for other European infrastructure.
He said: "Infrastructure does not happen when the market is already booming; it's something that must be done for the market to burgeon." ($1 = 0.8617 euros) ($1 = 1.5340 Australian dollars)
(source: Reuters)